National Minimum Wage
The National Minimum Wage (NMW) is the minimum pay per hour most workers are entitled to by law. The rate will depend on a worker’s age and if they are an apprentice.
The National Living Wage
The Government’s National Living (NLW) Wage was introduced on 1 April 2016 for all working people aged 25 and over, and is set at £7.20 per hour. The current National Minimum Wage for those under the age of 25 still applies.
- Most workers over school leaving age will be entitled to receive the NMW.
- HM Revenue & Customs (HRMC) can take employers to court for not paying the NMW/NLW.
Rates of pay – from 1 October 2016 are:
|From 1 October 2016||From 1 October 2015|
|25 yrs old and over||£7.20 per hour||£6.70 per hour|
|21-24 yrs old||£6.95 per hour||£6.70 per hour|
|18-20 yrs old||£5.55 per hour||£5.30 per hour|
|16-17 yrs old||£4.00 per hour||£3.87 per hour|
|Apprentices under 19 or 19 or over who are in the first year of apprenticeship||£3.40 per hour||£3.30 per hour|
Penalties for failure to comply with the National Living Wage
With the introduction of the National Living Wage the penalty for non-payment will be 200% of the amount owed, unless the arrears are paid within 14 days.
The maximum fine for non-payment will be £20,000 per worker. However, employers who fail to pay will be banned from being a company director for up to 15 years.
For further information contact hrservicecentre on 0845 606 9640 or go to acas.org.uk